Bitcoin Price Trades Above $81,500 as Fed Keeps Rates Steady in Split Vote - Cryptonews.net

The Federal Reserve left its benchmark rate unchanged Wednesday, holding the federal funds target range at 3.75% to 4%. The bitcoin price showed some volatility around $81,000, trading at $81,478 at the time of writing. The decision passed 10-2, with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting and calling for a quarter-point increase.

This marks the first time since 1992 that a Fed governor and a regional bank president have dissented together on the same side. Fed Chair Kevin Warsh addressed reporters after the vote, stating that politics played no role in the decision, which came just days before the midterm elections.

Policy Signals

The committee’s statement removed earlier language about when a hike might support a return to 2% inflation, replacing it with a line indicating that more information will guide the policy stance. The Fed also upgraded its description of economic growth from solid to strong.

The signal points toward tightening, with Fed funds futures and the Fed’s own dot plot suggesting a rate increase by December. Market pricing puts the odds near three in four, as inflation has been running hot. The two dissenters are the officials who want to act on inflation concerns.

Bitcoin Market Response

Bitcoin’s reaction to the Fed decision was restrained. The cryptocurrency spiked to about $81,700 in the minutes after the announcement, fell below $80,500, and then recovered toward $81,000. Most traders had expected a rate hold, so the muted movement surprised few.

Bitcoin’s initial response to Fed news tends to be modest, with the real direction often emerging over the following day. Spot Bitcoin ETFs drew $110 million in net inflows on October 26 and $176 million on October 27, indicating some institutional buying of the dip. However, other observers have noted large holders selling into strength.

Bitcoin sits about a third below its October 2025 record near $126,000. A rate-hike path works against an asset that has thrived on cheap money, and the market has spent months adjusting to the possibility that the easy-money era is over.

Next Steps

Traders are divided on interpreting the hold as evidence the Fed will move slowly versus seeing December as the real test. For now, the key level to watch is $80,000 for bitcoin, which has held as support in recent sessions. A clean break below it would expose the next floor.

Warsh and his colleagues have indicated they will wait for incoming data before making further decisions. Bitcoin investors will have to wait along with everyone else. The crypto industry has spent about $176 million on more than 100 midterm races to build a bipartisan bloc in Congress that could protect its interests.

Bitcoin’s next big political test arrives on November 3, when voters across the country head to the polls, though crypto has not dominated the campaign trail. Fairshake, the industry’s largest super PAC, led the political effort as it had in the 2024 cycle.